PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES Renewable … 8 2 Rule Proposal Advance... · 2.6 to...
Transcript of PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES Renewable … 8 2 Rule Proposal Advance... · 2.6 to...
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PUBLIC UTILITIES
BOARD OF PUBLIC UTILITIES
Renewable Energy and Energy Efficiency
Proposed Amendments: N.J.A.C. 14:8-2.3 and 2.6
Authorized By: Board of Public Utilities, Joseph L. Fiordaliso, President; Mary-Anna Holden,
Dianne Solomon, Upendra J. Chivukula, and Robert M. Gordon, Commissioners.
Authority: N.J.S.A. 48:2-1 et seq., in particular 48:2-13 and 48:3-87, and P.L. 2018, c. 17.
Calendar Reference: See Summary below for explanation of exception to calendar requirement.
BPU Docket Number: EX18111244.
Proposal Number: PRN 2019-023.
Comments may be submitted through April 20, 2019, by e-mail in Microsoft Word format, or
in a format that can be easily converted to Word, to: [email protected] or on paper to:
Aida Camacho-Welch, Secretary
New Jersey Board of Public Utilities
ATTN: BPU Docket Number: EX18111244
44 S. Clinton Ave., 3rd Floor, Suite 314
PO Box 350
Trenton, NJ 08625-0350
The agency proposal follows:
Summary
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The Board of Public Utilities (Board) is proposing amendments to N.J.A.C. 14:8-2.3 and
2.6 to conform the existing rules to certain provisions of P.L. 2018, c. 17 (Clean Energy Act).
The Clean Energy Act made several changes to the Renewable Portfolio Standard (RPS),
including increasing the class I RPS obligation to 50 percent by 2030; increasing the solar RPS
over the current and the next three energy years, while exempting certain providers from
contributing to the increased solar obligations; setting a cap on the cost to customers of satisfying
the class I RPS that is equal to nine percent of total retail cost to customers in energy years 2019,
2020, and 2021 (EY19, EY20, and EY21) and seven percent of the total retail cost to customers
in any energy year thereafter; and removing the provision in the law that allowed basic
generation service providers/third-party suppliers (BGS Providers/TPS) to submit class I
Renewable Energy Certificates (RECs), as well as class II RECs to satisfy their class II RPS
obligations. Some of the proposed amendments are intended to implement these provisions. In
addition, the Board proposes amendments that, although not expressly mandated by the Clean
Energy Act, are necessary to make the processes governed by the RPS rules conform to the
Clean Energy Act’s requirements regarding the increases in the class I and Solar RPS and to
reduce the likelihood of triggering the cost cap.
To this end, the Board proposes the following changes:
1. N.J.A.C. 14:8-2.3(a) Table A is proposed for replacement to conform it to the
legislative increase to the class I RPS obligations through 2033;
2. New N.J.A.C. 14:8-2.3(d) and 2.3(a) Table A are added, such that the solar RECs
(SRECs) submitted in satisfaction of the solar RPS also satisfy the same percentage
of the class I RPS;
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3. Amendments to N.J.A.C. 14:8-2.3(h)1 and (h)2 clarify that the statute disallows the
use of class I RECs for class II compliance;
4. Recodified N.J.A.C. 14:8-2.3(l) is proposed for amendment to begin the procedure for
calculating the solar RPS compliance obligation;
5. New N.J.A.C. 14:8-2.3(m), which substantively replaces existing N.J.A.C. 14:8-
2.3(k) (N.J.A.C. 14:8-2.3(k) Table B is proposed for deletion, as it is redundant and
outdated with the changes proposed in new N.J.A.C. 14:8-2.3(a) Table A), is added to
provide the necessary calculation for providers/TPS that are not exempted from the
increase in the solar RPS during EY19, 20, and 21;
6. New N.J.A.C. 14:8-2.3(n) is added to explain that solar obligations based on exempt
and non-exempt electricity supplied by BGS providers must be calculated separately
and then summed to determine the total solar obligation for that energy year;
7. New N.J.A.C. 14:8-2.3(o) is added to provide the necessary calculation for BGS
providers that are exempted from the increase in the solar RPS during EY19, 20, and
21;
8. New N.J.A.C. 14:8-2.3(p) is added to provide the necessary calculation for BGS
providers/TPS that are not exempted from the increase in the solar RPS during EY20,
21, and 22;
9. New N.J.A.C. 14:8-2.3(q) is added to provide instructions for BGS providers to
calculate their solar obligation during, and after, EY 2023.
10. N.J.A.C. 14:8-2.6(i) is changed to state that class II RECs can only be used to satisfy
the class II renewable energy requirements.
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The Board has provided a 60-day comment period on this notice of proposal.
Accordingly, this notice is excepted from the rulemaking calendar requirement pursuant to
N.J.A.C. 1:30-3.3(a)5.
Social Impact
The proposed increase to the class I RPS will have a positive social impact for New
Jersey by mirroring the class I requirements put in place by the Clean Energy Act. Renewable
sources of electricity provide a number of social benefits that fossil fuels do not, particularly in
regard to the environment.
The proposed increase to the solar RPS for the next three years will have a positive social
impact for New Jersey by mirroring the requirements of the Clean Energy Act, as well as
avoiding an immediate impact to the solar industry in New Jersey. The proposed amendments
to the calculations for exempt and non-exempt BGS Providers/TPS, by providing the appropriate
calculations to allow TPS/BGS providers to correctly calculate their obligations, will provide
clarity and consistency to the regulatory process. The proposed amendments that change the
relationship of the solar RPS to the class I RPS will produce a positive social impact by
mitigating the cost of compliance with the increased class I RPS for the BGS Providers/TPS and,
thus, to the ratepayers.
Lastly, the requirement that the class II RPS be satisfied henceforth exclusively by class
II RECs will have a positive social impact both by creating additional demand for class II RECs,
some of which come from municipal solid waste facilities within the State, and by increasing the
number of the more costly class I RECs available to satisfy the increased class I RPS, which will
mitigate the cost of compliance with that increased requirement. In addition, this requirement
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will increase the total amount of electricity that must be generated from renewable sources,
which will correspondingly decrease the amount of electricity that is supplied by fossil fuels.
Economic Impact
Proposed new N.J.A.C. 14:8-2.3(a) Table A will spur investment in class I resources in
the State, thus providing associated economic benefits, including job creation. The proposed
decrease in the solar RPS through EY33 will help to facilitate a transition away from the
subsidies currently provided by ratepayers to a less costly form of incentive, while the increase
over the next three energy years will avert a shock to the existing New Jersey solar industry.
The inclusion of the solar RPS as a subset of the class I RPS will help reduce the cost to the
BGS Providers, third-party electric suppliers, and ultimately their customers.
The proposed amendments to the calculations needed to determine the solar RPS
obligation for exempt and non-exempt BGS Providers/suppliers will have a positive economic
impact by providing regulatory certainty, which tends to decrease regulatory costs.
N.J.A.C. 14:8-2.6(i) will have a positive impact on ratepayers by prohibiting class I RECs
from being used for class II obligations. Since class I RECs are currently valued higher than
class II RECs, that is, anticipated to lead to lower ratepayer costs. Since the price of both class I
and class II RECs are established by the market, however, future cost impacts are difficult to
predict.
Federal Standards Statement
Executive Order No. 27 (1994) and N.J.S.A. 52:14B-1 et seq., requires State agencies
that adopt, readopt, or amend State rules exceeding any Federal standards or requirements to
include in the rulemaking document a Federal standards analysis. The class I and class II rules
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have no Federal analogue and are not promulgated under the authority of, or in order to
implement, comply with, or participate in any program established under Federal law or under a
State statute that incorporates or refers to Federal law, Federal standards, or Federal
requirements. Accordingly, Executive Order No. 27 (1994) and N.J.S.A. 52:14B-1 et seq., do
not require a Federal standards analysis for the proposed amendments.
Jobs Impact
The proposed amendments are anticipated to create jobs in the sectors involved in class I
and class II generation by increasing the class I RPS obligation, while mandating an increased
reliance on class II RECs to class II RPS obligations. The proposed amendments are also
anticipated to create jobs in the solar sector over the next three energy years by increasing the
solar RPS. While the proposed amendments will decrease the solar RPS in subsequent energy
years, the Board will have implemented a successor incentive program by the end of that time
pursuant to other provisions of the Clean Energy Act.
Agriculture Industry Impact
The proposed amendments, which will update the rules to bring them into compliance
with P.L. 2018, c. 17, are not anticipated to have a significant economic impact upon the
agricultural industry. The changes to the REC scheme will affect the industry’s electricity costs
only slightly and indirectly; class II energy is not a significant percentage of the energy
generation relied upon in the State and energy costs in their entirety are only one of many factors
which affect agricultural costs.
In the long term, the proposed increase to the class I RPS and the requirement that only
class II RECs be used to satisfy the class II RPS are anticipated to act as a spur to the
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development of renewable energy markets, thus reducing use of environmentally damaging fossil
fuels. Ultimately, this will have a positive impact on the agricultural industry and an important
beneficial economic impact on the State as a whole.
Regulatory Flexibility Statement
A small business, as defined in the New Jersey Regulatory Flexibility Act, N.J.S.A.
52:14B-16 et seq., is a business that has fewer than 100 full-time employees, is resident in the
State, independently owned and operated, and not dominant in its field. The proposed
amendments do not impose reporting, recordkeeping, or other compliance requirements on small
businesses operating renewable electric generation facilities in New Jersey or in the rest of the
PJM region. Accordingly, no regulatory flexibility analysis is required.
Housing Affordability Impact Analysis
The proposed amendments will have an insignificant impact on the affordability of
housing in New Jersey because these proposed amendments address only incentives for
renewable energy generation and do not affect the average costs associated with housing.
Smart Growth Development Impact Analysis
Since the scope of these proposed amendments are limited to the SREC market, the
proposed amendments will have no impact on smart growth development in New Jersey. It is
extremely unlikely that the proposed amendments would evoke a change in housing production
in Planning Areas 1 or 2, or within designated centers, under the State Development and
Redevelopment Plan in New Jersey.
Racial and Ethnic Community Criminal Justice and Public Safety Impact
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The Board has evaluated this rulemaking and determined that changes in solar incentives
will not have an impact on pretrial detention, sentencing, probation, or parole policies concerning
adults and juveniles in the State. Accordingly, no further analysis is required.
Full text of the proposal follows (additions indicated in boldface thus; deletions indicated in
brackets [thus]):
SUBCHAPTER 2. RENEWABLE PORTFOLIO STANDARDS
14:8-2.3 Amount of renewable energy required
(a) Each supplier/provider, as defined at N.J.A.C. 14:8-1.2 that sells electricity to retail
customers in New Jersey, shall ensure that the electricity it sells each energy year in New Jersey
includes at least the minimum amount of qualified renewable energy, as defined at N.J.A.C.
14:8-2.2, required for that energy year, as specified in this section. Requirements for class I
[and], class II, and solar renewable energy are set forth in Table A below:
[Table A
What Percentage Of Energy Supplied Must Be Class I Or Class II Renewable
Energy?
Energy Year Class I
Renewable
Class II
Renewable
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Energy Energy
June 1, 2004 - May 31, 2005 .74% 2.50%
June 1, 2005 - May 31, 2006 0.983% 2.50%
June 1, 2006 - May 31, 2007 2.037% 2.50%
June 1, 2007 - May 31, 2008 2.924% 2.50%
June 1, 2008 - May 31, 2009 3.84% 2.50%
June 1, 2009 - May 31, 2010 4.685% 2.50%
EY 2011: June 1, 2010 - May 31, 5.492% 2.50%
2011
EY 2011: June 1, 2011 - May 31, 6.320% 2.50%
2012
EY 2011: June 1, 2012 - May 31, 7.143% 2.50%
2013
EY 2011: June 1, 2013 - May 31, 7.977% 2.50%
2014
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EY 2011: June 1, 2014 - May 31, 8.807% 2.50%
2015
EY 2011: June 1, 2015 - May 31, 9.649% 2.50%
2016
EY 2011: June 1, 2016 - May 31, 10.485% 2.50%
2017
EY 2011: June 1, 2017 - May 31, 12.325% 2.50%
2018
EY 2011: June 1, 2018 - May 31, 14.175% 2.50%
2019
EY 2011: June 1, 2019 - May 31, 16.029% 2.50%
2020
EY 2011: June 1, 2020 - May 31, 17.880% 2.50%]
2021
Table A
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What Percentage of Energy Supplied Must Be Solar, Class I,
or Class II Renewable
Energy Year Solar Class I Class II Total
June 1, 2018 - May 31, 2019 4.30% 14.175% 2.50% 20.975%
June 1, 2018 - May 31, 2019* 3.29%* 14.175%* 2.50%* 19.965%*
June 1, 2019 - Dec. 31, 2019 4.90% 16.029% 2.50% 18.529%
June 1, 2019 - Dec. 31, 2019* 3.38%* 16.029%* 2.50%* 21.909%*
January 1, 2020 - May 31, 2020 4.90% 21.0% 2.50% 23.50%
January 1, 2020 - May 31, 2020* 3.38%* 21.0%* 2.50%* 26.88%*
June 1, 2020 - May 31, 2021 5.10% 21.0% 2.50% 23.50%
June 1, 2020 - May 31, 2021* 3.47%* 21.0%* 2.50%* 26.97%*
June 1, 2021 - May 31, 2022 5.10% 21.0% 2.50% 23.50%
June 1, 2022 - May 31, 2023 5.10% 22.0% 2.50% 24.50%
June 1, 2023 - May 31, 2024 4.90% 27.0% 2.50% 29.50%
June 1, 2024 - May 31, 2025 4.80% 35.0% 2.50% 37.50%
June 1, 2025 - May 31, 2026 4.50% 38.0% 2.50% 40.50%
June 1, 2026 - May 31, 2027 4.35% 41.0% 2.50% 43.50%
June 1, 2027 - May 31, 2028 3.74% 44.0% 2.50% 46.50%
June 1, 2028 - May 31, 2029 3.07% 47.0% 2.50% 49.50%
June 1, 2029 - May 31, 2030 2.21% 50.0% 2.50% 52.50%
June 1, 2030 - May 31, 2031 1.58% 50.0% 2.50% 52.50%
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June 1, 2031 - May 31, 2032 1.40% 50.0% 2.50% 52.50%
June 1, 2032 - May 31, 2033 1.10% 50.0% 2.50% 52.50%
(*BGS Providers with existing contracts)
(b) [The Board shall adopt rules setting minimum amounts of solar electric generation, class I
renewable energy and class II renewable energy required for EY 2022 and each subsequent
energy year. These minimum amounts shall be no lower than those required for EY 2021.] Each
supplier/provider that sells electricity to retail customers in New Jersey shall ensure that
the electricity it sells each reporting year in New Jersey includes at least the minimum
percentage of solar energy required for that energy year as set by the Board. The Board, in
consultation with the NJDEP, EDCs, Rate Counsel, the solar energy industry, and relevant
stakeholders, shall periodically consider increasing the renewable energy portfolio standards
beyond the minimum amounts set forth in this chapter, taking into account the cost impacts and
public benefits of such increases including, but not limited to:
1.-4. (No change.)
(c) (No change.)
(d) Beginning in EY20, SREC obligations are a component of class I renewable energy
requirements, and satisfaction of SREC obligations shall be counted toward class I
renewable energy requirements.
[(d)] (e) (No change in text.)
[(e) (Reserved.)]
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(f) Only RECs based upon class II renewable energy, as defined at N.J.A.C. 14:8-1.2, shall
be used to meet the class II renewable energy requirements.
[(f)] (g) The following shall apply to the type of energy, and type of documentation, used for
compliance with each of the requirements in this subchapter:
1. SRECs may be used to meet any requirement for solar electric generation[,] or class I
renewable energy[, or class II renewable energy];
2. Class I RECs may be used to meet class I renewable energy requirements [or class II
renewable energy requirements], but shall not be used to meet solar electric generation
requirements or class II renewable energy requirements; and
3. Class II RECs shall be used only to meet class II renewable energy requirements[,]
and shall not be used to meet solar electric generation requirements or class I renewable energy
requirements.
Recodify existing (g)-(i) as (h)-(j) (No change in text.)
(k) (Reserved)
[(j)] (l) Each megawatt-hour (MWh) of retail electricity supplied in New Jersey by a TPS/BGS
provider subject to this subchapter carries with it an accompanying solar obligation. For [Energy
Year 2015, each TPS/BGS provider] any electricity supplied by a TPS, such TPS shall
calculate its solar obligation [as set forth in (k) below. Subsection (k) below allocates the Table
B Statewide solar obligation among all TPS/BGS providers that are subject to this subchapter.]
by multiplying its total retail sales by the applicable percentage requirement in Table A.
For Energy Year 2019, 2020, or 2021, each BGS provider shall calculate its solar obligation
as set forth in (m) or (n) below. Subsection (m) allocates the solar obligation of BGS
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providers with electricity supply contracts which were effective prior to date of enactment
of P.L. 2018, c. 17. Subsection (n) below allocates the Table A Statewide solar obligation
among all BGS providers that are subject to this subchapter. All [TPS/BGS] BGS provider
solar obligations, taken together, must equal the Statewide solar obligation set forth in Table [B
below] A above for Energy Year [2015] 2019, 2020, or 2020.
[(k) For electricity supplied during EY 2015, a BGS provider shall calculate its solar obligation
by following one of the two calculations set forth in this subsection:
1. Those BGS providers having supply contracts that were effective prior to July 23,
2012, have a solar obligation equal to the number of SRECs mandated by the solar renewable
portfolio standards requirements that were in effect on the date that these BGS providers
executed their existing supply contracts. These BGS providers shall calculate their solar
obligation as follows:
i. Determine the solar electric generation requirement, converted from GWhs to
MWhs, in effect when the BGS contract subject to this subsection was executed (see Table B
below);
ii. Determine market share of all electricity supplied Statewide during Energy
Year 2015, as follows:
(1) Consult the Board's NJCEP website to determine the total number of
MWhs of electricity supplied Statewide during the energy year by all TPS/BGS providers subject
to this subchapter;
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(2) Determine the MWhs of exempt electricity supplied during the energy
year from supply contracts which were in effect prior to the date of enactment of P.L. 2012, c.
24; and
(3) Divide (k)1ii(2) above by (k)1ii(1) above to calculate market share;
iii. Multiply result from (k)1ii(3) above by (k)1i above to arrive at the solar
obligation for an individual exempt electricity BGS provider.
2. Those BGS providers that do not have supply contracts which were effective prior to
July 23, 2012, shall calculate their solar obligations as follows:
i. Multiply the individual BGS provider's total non-exempt retail electricity sales
during the Energy Year in MWh by the applicable percentage requirement in N.J.S.A. 48:3-
87.d(3).
ii. Determine the market share-based allocation of the increased obligation
avoided by exempted electricity by consulting the Board's New Jersey Clean Energy Program
(NJCEP) website to determine the additional obligation amount which must be distributed from
the exempted BGS providers to the non-exempt BGS providers, calculated by Board staff as
follows:
(1) Determine the total retail electricity sales of exempt BGS providers
Statewide;
(2) Determine the total retail electricity sales of non-exempt BGS
providers Statewide;
(3) Determine the total retail electricity sales of all BGS providers and
TPS Statewide;
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(4) Divide (k)2ii(1) above by (k)2ii(3) above to calculate market share of
exempt BGS providers Statewide;
(5) Determine the total solar obligation of exempt BGS providers
Statewide during the Energy Year by multiplying (k)2ii(4) above by (k)1i above;
(6) Multiply the applicable percentage requirement in N.J.S.A. 48:3-
87.d(3) by (k)2ii(1) above and subtract (k)2ii(5) above;
(7) Calculate the percentage share of total non-exempt electricity sold by
dividing non-exempt electricity sold by the individual BGS provider by (k)2ii(2) above; and
(8) Multiply (k)2ii(6) above by (k)2ii(7) above.
iii. Add (k)2i above to (k)2ii(8) above to arrive at an individual non-exempt BGS
provider's obligation in MWh; and
iv. For any electricity supplied by a TPS, such TPS shall calculate its solar
obligation by multiplying its total retail sales by the applicable percentage requirement in
N.J.S.A. 48:3-87.d(3).
Table B
Total Statewide Solar Obligation
Starting June 1, 2010
Statewide Solar Obligation in
GWhs or Percentage of
Energy Year Retail Sales
EY 2011: June 1, 2010 - May 31, 2011 306 GWhs
EY 2012: June 1, 2011 - May 31, 2012 442 GWhs
DISCLAIMER – THIS IS A DRAFT OF A PROPOSED RULE THAT IS PENDING REVIEW BY THE OFFICE OF ADMINISTRATIVE LAW. PLEASE NOTE THAT MODIFICATIONS TO THIS RULE, MINOR AND/OR MAJOR, MAY BE FORTHCOMING UPON
PUBLICATION IN THE NEW JERSEY REGISTER. FURTHERMORE, RELEASE OF THIS DRAFT DOES NOT INITIATE OR OTHERWISE INFLUENCE RULEMAKING TIME PERIODS PRESCRIBED BY LAW OR CODE.
EY 2013: June 1, 2012 - May 31, 2013 596 GWhs
EY 2014: June 1, 2013 - May 31, 2014 2.050%
For BGS providers with existing supply 772 GWhs
contracts:
EY 2015: June 1, 2014 - May 31, 2015 2.450%
For BGS providers with existing supply 965 GWhs
contracts:
EY 2016: June 1, 2015 - May 31, 2016 2.750%
EY 2017: June 1, 2016 - May 31, 2017 3.000%
EY 2018: June 1, 2017 - May 31, 2018 3.200%
EY 2019: June 1, 2018 - May 31, 2019 3.290%
EY 2020: June 1, 2019 - May 31, 2020 3.380%
EY 2021: June 1, 2020 - May 31, 2021 3.470%
EY 2022: June 1, 2021 - May 31, 2022 3.560%
EY 2023: June 1, 2022 - May 31, 2023 3.650%
EY 2024: June 1, 2023 - May 31, 2024 3.740%
EY 2025: June 1, 2024 - May 31, 2025 3.830%
EY 2026: June 1, 2025 - May 31, 2026 3.920%
EY 2027: June 1, 2026 - May 31, 2027 4.010%
EY 2028: June 1, 2027 - May 31, 2028 4.100%]
(m) Notwithstanding any other provision of this section, if a BGS provider has, prior to
May 23, 2018, executed a BGS contract to provide retail electricity, the solar obligation
DISCLAIMER – THIS IS A DRAFT OF A PROPOSED RULE THAT IS PENDING REVIEW BY THE OFFICE OF ADMINISTRATIVE LAW. PLEASE NOTE THAT MODIFICATIONS TO THIS RULE, MINOR AND/OR MAJOR, MAY BE FORTHCOMING UPON
PUBLICATION IN THE NEW JERSEY REGISTER. FURTHERMORE, RELEASE OF THIS DRAFT DOES NOT INITIATE OR OTHERWISE INFLUENCE RULEMAKING TIME PERIODS PRESCRIBED BY LAW OR CODE.
resulting from the electricity supplied under that contract shall be determined using the
provisions of this subchapter that were in effect at the time the contract was executed. For
the purpose of this section, the electricity supply covered by these contracts shall be called
“exempt electricity,” and electricity supply not covered by such a contract shall be called
“non-exempt electricity.”
(n) All contracts subject to exemption under (m) above will expire on or before May 31,
2021. Therefore, for EY 2019, 2020, or 2021, the solar obligation that attaches to exempt
electricity supply must be calculated separately from the solar obligation for non-exempt
electricity supply, in accordance with the applicable provisions of (o) and (p) below. If a
BGS provider’s energy portfolio includes both exempt and non-exempt electricity supply,
the solar obligation for each shall be calculated separately and summed to determine that
BGS provider’s total solar obligation for the energy year.
(o) For any exempt electricity supplied, a provider shall calculate its solar obligation as
follows:
1. Determine the MWhs of exempt electricity the provider supplied during the
energy year;
2. Determine the solar electric generation percentage requirement in effect when the
BGS contract subject to (m) above was executed; and
3. Multiply (o)1 by (o)2 above.
(p) For any non-exempt electricity supplied during EY 2020, 2021, or 2022, a BGS provider
shall calculate its solar obligation as follows:
DISCLAIMER – THIS IS A DRAFT OF A PROPOSED RULE THAT IS PENDING REVIEW BY THE OFFICE OF ADMINISTRATIVE LAW. PLEASE NOTE THAT MODIFICATIONS TO THIS RULE, MINOR AND/OR MAJOR, MAY BE FORTHCOMING UPON
PUBLICATION IN THE NEW JERSEY REGISTER. FURTHERMORE, RELEASE OF THIS DRAFT DOES NOT INITIATE OR OTHERWISE INFLUENCE RULEMAKING TIME PERIODS PRESCRIBED BY LAW OR CODE.
1. Determine the provider’s contemporaneous solar obligation for non-exempt
electricity by multiplying their total non-exempt retail electricity sales in MWh during the
energy year by the applicable percentage requirement in Table A above.
2. Determine the provider’s share of the banked obligations from the increased solar
requirements avoided by exempt retail electricity in the previous energy year or previous
two energy years, as follows:
i. Determine the market share of the non-exempt electricity supplied
Statewide during the applicable energy year, as follows:
(1) Consult the Board’s NJCEP website to determine the number of
MWhs of non-exempt electricity supplied Statewide during the energy year by all BGS
providers subject to this subchapter;
(2) Determine the number of MWhs of non-exempt electricity the
BGS provider supplied during the energy year; and
(3) Divide (p)2i(1) above by (p)2i(2) above to obtain a fraction,
representing the provider’s non-exempt electricity market share for the applicable energy
year.
3. Determine the total deferred solar obligation incurred from exempt electricity
supply during the previous energy year(s) as follows:
i. Consult Table A above to determine the total Statewide solar obligation
for all electricity supplied during the energy year and the percentage requirement for
exempt supply.
DISCLAIMER – THIS IS A DRAFT OF A PROPOSED RULE THAT IS PENDING REVIEW BY THE OFFICE OF ADMINISTRATIVE LAW. PLEASE NOTE THAT MODIFICATIONS TO THIS RULE, MINOR AND/OR MAJOR, MAY BE FORTHCOMING UPON
PUBLICATION IN THE NEW JERSEY REGISTER. FURTHERMORE, RELEASE OF THIS DRAFT DOES NOT INITIATE OR OTHERWISE INFLUENCE RULEMAKING TIME PERIODS PRESCRIBED BY LAW OR CODE.
ii. Consult the Board’s NJCEP website to obtain the deferred solar obligation
for the exempt electricity that was supplied during the previous energy year or previous
two energy years, as applicable.
iii. The total amount of increased solar obligation avoided by exempt
electricity supply in an energy year shall be allocated to the following two energy years.
4. Multiply the BGS provider’s non-exempt market share from (p)1 above by the
total deferred solar obligation from (p)3iii above. The result is the provider’s solar
obligation for the deferred exempt electricity based on the share of non-exempt electricity
that it supplied during the energy year.
5. Add the BGS provider’s contemporaneous solar obligations in MWh resulting
from (p)1 above to the banked share resulting from calculated (p)4 above in MWh above to
arrive at the total RPS solar obligation.
(q) For electricity supplied during EY 2023 or later, a BGS provider shall calculate its solar
obligation by multiplying its total retail sales by the applicable percentage required in
Table A above.
14:8-2.6 Energy that qualifies for a [Class] class II REC
(a)-(h) (No change.)
(i) [In addition to] Beginning on June 1, 2019, only the other types of energy that qualify as
class II renewable energy under this section[, any energy that qualifies as class I renewable
energy under N.J.A.C. 14:8-2.4] may be used to satisfy the requirements for class II renewable
energy.